In particular he briefed the new ambassador, Sergei Razov, to seek to boost economic ties with China, they said.

"Relations here are good, but the perspectives are much better and there are many as yet unused reserves," Putin was quoted late Tuesday as saying by the Interfax news agency.

He added that the energy industry -- from electricity to fuel supplies to third countries, along with and big projects which could promote mutual ties, were high on the list.

Russia was actively cooperating with China "in international groups and intensively consult each other on key issues including reforms of the UN," Putin said.

The Russian leader also noted that military ties were developing as well, citing as example the large-scale exercises due to take place later this month.

About 10,000 troops from Russia and China are expected to take part in the August 18-25 exercise, which will begin in Vladivostok and move to the Yellow Sea and the Jiaodong peninsula, according to the Chinese defense ministry.